1. In addition to the powers conferred by law upon private
corporations and limited-liability companies, a bank may:
(a) Exercise by its board of directors, managers or authorized
officers and agents, subject to law, all powers necessary to carry on the
business of banking by:
(1) Discounting and negotiating promissory notes, drafts,
bills of exchange and other evidences of indebtedness;
(2) Receiving deposits;
(3) Buying and selling exchange, coin and bullion; and
(4) Loaning money on personal security or real and personal
property.
Ê At the time of making loans, banks may take and receive interest or
discounts in advance.
(b) Adopt regulations for its own government not inconsistent with
the Constitution and laws of this State.
(c) Issue, advise and confirm letters of credit authorizing the
beneficiaries to draw upon the bank or its correspondents.
(d) Receive money for transmission.
(e) Establish and become a member of a clearinghouse association
and pledge assets required for its qualification.
(f) Exercise any authority and perform all acts that a national
bank may exercise or perform, with the consent and written approval of
the Commissioner. The Commissioner may, by regulation, waive or modify a
requirement of Nevada law if the corresponding requirement for national
banks is eliminated or modified.
(g) Provide for the performance of the services of a bank service
corporation, such as data processing and bookkeeping, subject to any
regulations adopted by the Commissioner.
(h) Unless otherwise specifically prohibited by federal law, sell
annuities if licensed by the Commissioner of Insurance.
2. A bank may purchase, hold and convey real property:
(a) As is necessary for the convenient transaction of its business,
including furniture and fixtures, with its banking offices and for future
site expansion. This investment must not exceed, except as otherwise
provided in this section, 60 percent of its stockholders’ or members’
equity, plus subordinated capital notes and debentures. The Commissioner
may authorize any bank located in a city whose population is more than
10,000 to invest more than 60 percent of its stockholders’ or members’
equity, plus subordinated capital notes and debentures, in its banking
offices, furniture and fixtures.
(b) As is mortgaged to it in good faith by way of security for
loans made or money due to the bank.
(c) As is permitted by NRS 662.103 .
3. This section does not prohibit any bank from holding,
developing or disposing of any real property it may acquire through the
collection of debts due it. Any real property acquired through the
collection of debts due it may not be held for longer than 10 years. It
must be sold at private or public sale within 30 days thereafter. During
the time that the bank holds the real property, the bank shall charge off
the real property on a schedule of not less than 10 percent per year, or
at a greater percentage per year as the Commissioner may require.
(Added to NRS by 1971, 979; A 1979, 556, 1387, 1388; 1983, 1736;
1985, 1051; 1987, 1911; 1989, 1933; 1993, 2279; 1995, 484, 1550; 1997,
986, 3514)
Subject to the approval of the Commissioner, and on the
authority of a majority of its managers or board of directors, a bank may:
1. Enter into such contracts, incur such obligations and generally
do and perform any or all such acts and things whatsoever as may be
necessary or appropriate in order to take advantage of any or all
memberships, loans, subscriptions, contracts, grants, rights or
privileges which may at any time be available to inure to banking
institutions, or to their depositors, creditors, stockholders, members,
conservators, receivers or liquidators, by virtue of those provisions of
the Federal Deposit Insurance Act, 12 U.S.C. §§ 1811-1831, which creates
the Federal Deposit Insurance Corporation and provides for the insurance
of deposits, or of any other provisions of that or any other act or
resolution of the Congress to aid, regulate or safeguard banking
institutions and their depositors, including any amendments to such acts,
laws or resolutions or substitutions therefor.
2. Subscribe for and acquire any stock, debentures, bonds or other
types of securities of the Federal Deposit Insurance Corporation and
shall comply with the lawful regulations and requirements from time to
time issued or made by the Federal Deposit Insurance Corporation.
(Added to NRS by 1971, 980; A 1983, 1737; 1987, 1912; 1995, 485)
1. A bank may maintain separate departments and deposit in its
commercial department to the credit of its trust department all
uninvested fiduciary moneys of cash and secure, under rules and
regulations of the Commissioner, all such deposits in the name of the
trust department, whether in consolidated deposits or for separate
fiduciary accounts, by segregating and delivering to the trust department
securities which are eligible for the security of money of the State of
Nevada under subsection 1 of NRS 356.020 . Such securities must be held by the trust
department as security for the full payment or repayment of all such
deposits and must be kept separate and apart from other assets of the
trust department. Until all such deposits have been accounted for to the
trust department or to the individual fiduciary account, no creditor of
the bank has any claim or right to such securities.
2. When fiduciary money is deposited by the trust department in
the commercial department of the bank, the deposit thereof does not
constitute a use of such money in the general business of the bank and
the bank in this instance is not liable for interest on such money.
3. To the extent and in the amount such deposits may be insured by
the Federal Deposit Insurance Corporation, the amount of security
required for such deposits may be reduced.
4. The Commissioner may make such regulations as he deems
necessary for the enforcement of the provisions of this section.
(Added to NRS by 1971, 981; A 1983, 964, 1737; 1987, 1913)
INVESTMENTS; RESERVES; LOAN LIMITS
1. As used in this section “dealing in investment securities” does
not include the purchasing and selling of securities without recourse
solely upon order and for the account of customers.
2. Banks shall not engage in the business of dealing in any
investment securities, either directly or through subsidiary
corporations, except as otherwise provided in this title for investment
in public securities or private securities.
3. Any provision contained in the articles of incorporation issued
to any banking corporation before July 1, 1971, which is in conflict with
this section is revoked.
(Added to NRS by 1971, 981; A 1995, 485)
1. Notwithstanding any restrictions or limitations on investment
contained in any law of this state, a bank may, without limitation,
invest its funds in public securities which include:
(a) Obligations of the United States, its agencies or other
obligations guaranteed by the United States Government.
(b) Obligations of the United States Postal Service, whether or not
guaranteed as to principal and interest by the United States.
(c) Stock or obligations of a national mortgage association or any
successor or successors thereto, including the Federal National Mortgage
Association.
(d) Any bonds, general or revenue obligations or other debt
obligations of any state of the United States or of any city, town,
county, school district, improvement district, municipal corporation or
quasi-municipal corporation of any state in the United States or other
political subdivision of any such state.
(e) The bonds, debentures, securities or other similar obligations
issued pursuant to:
(1) The Federal Farm Loan Act, as amended;
(2) The Farm Credit Act of 1933, as amended;
(3) The Federal Home Loan Bank Act of 1932, as amended;
(4) The Farm Credit Act of 1971, 12 U.S.C. §§ 2001 to 2259,
inclusive, as now or hereafter amended; and
(5) Any other federal act or authority, the bonds,
debentures, securities or other similar obligations of which have been
approved by the Commissioner for investment.
2. This section is cumulative to all other laws relating to the
investment of bank funds.
(Added to NRS by 1971, 981; A 1971, 1184; 1973, 1092)
1. As used in this section, “private security” means a marketable
obligation in the form of a bond, note or debenture which is commonly
regarded as an investment security. It does not include investments which
are predominantly speculative in nature.
2. A bank may purchase a private security for its own account when
in its prudent banking judgment, which may be based in part upon
estimates which it believes to be reliable, it determines that:
(a) There is adequate evidence that the obligor will be able to
perform all that it undertakes to perform in connection with the
security, including all debt service requirements; and
(b) The security may be sold with reasonable promptness at a price
which corresponds reasonably to its fair value.
3. A bank may purchase a private security for its own account,
although its judgment with respect to the obligor’s ability to perform is
based predominantly upon estimates which it believes to be reliable.
Although the appraisal of the prospects of any obligor will generally be
based in part upon estimates, it is the purpose of this subsection to
permit a bank to exercise a broader range of judgment with respect to a
more restricted portion of its investment portfolio. This authority may
be exercised not only in the absence of a record of performance, but also
when there are prospects for improved performance.
4. A bank may, as a factor in reaching its prudent banking
judgment with respect to a private security, consider a ruling published
by the Commissioner on the eligibility of the private security for
purchase. Consideration must be given to the possibility that
circumstances on which the ruling was based may have changed since the
time of the ruling.
5. Subject to the limitations set forth in NRS 662.155 , the investment in any private securities of
any one obligor may at no time be more than 25 percent of the
stockholders’ or members’ equity of the bank.
(Added to NRS by 1971, 982; A 1983, 1738; 1987, 1913; 1997, 987)
1. Notwithstanding any restrictions or limitations on securities
for deposits of public money contained in any law of this state, the
bonds, debentures, securities or other similar obligations issued
pursuant to:
(a) The Federal Farm Loan Act, as amended;
(b) The Farm Credit Act of 1933, as amended;
(c) The Federal Home Loan Bank Act of 1932, as amended;
(d) The Farm Credit Act of 1971, 12 U.S.C. §§ 2001 to 2259,
inclusive, as now or hereafter amended; and
(e) Any other federal act or authority, the bonds, debentures,
securities or other similar obligations of which have been approved by
the Commissioner for investment,
Ê are, without limitation, authorized securities for all deposits of
public money for the State of Nevada, of agencies of the State of Nevada,
of counties of the State of Nevada, and of municipalities and other
political subdivisions of the State of Nevada.
2. This section is cumulative to all other laws relating to
securities for deposits of public money.
(Added to NRS by 1971, 982; A 1973, 1093; 1983, 1738; 1987, 1914)
1. A bank shall not be required to maintain a reserve against
deposits secured by any obligations of the United States, its agencies or
any other obligations guaranteed by the United States Government or any
of its agencies equal in par value to the amount of such deposits.
2. Such obligations shall be valid security for all loans and
deposits.
(Added to NRS by 1971, 983)
1. To the same extent that a bank may invest its money in
obligations of the United States, a bank may invest its money and may
invest the money in its custody or possession which is eligible for
investment:
(a) In bonds or notes secured by a mortgage or deed of trust
insured or guaranteed by the Federal Housing Administrator or the
Department of Veterans Affairs;
(b) In mortgages on real property which have been accepted for
insurance by the Federal Housing Administrator or Department of Veterans
Affairs; and
(c) In obligations of national mortgage associations or bonds,
debentures, consolidated bonds or other obligations of any Federal Home
Loan Bank or Banks.
2. A bank may make such loans:
(a) Secured by real property, as the Federal Housing Administrator
or Department of Veterans Affairs has insured or has made a commitment to
insure, and may obtain such insurance.
(b) As are insured or guaranteed by the Federal Housing
Administrator, and on being approved as eligible for credit insurance by
the Department of Veterans Affairs, may make such loans as are insured or
guaranteed by the Department of Veterans Affairs.
3. Wherever by statute of this state:
(a) Collateral is required as security for the deposit of public
money;
(b) Deposits are required to be made with any public officer or
department; or
(c) An investment of stockholders’ or members’ equity, or a reserve
or other fund is required to be maintained, consisting of designated
securities,
Ê bonds and notes secured by a mortgage or deed of trust insured by the
Federal Housing Administrator or Department of Veterans Affairs,
debentures issued by the Federal Housing Administrator and obligations of
national mortgage associations are eligible for those purposes.
4. No law of this state prescribing the nature, amount or form of
security or requiring security upon which loans or investments may be
made, prescribing or limiting the rates of time of payment of the
interest any obligation may bear, or prescribing or limiting the period
for which loans or investments may be made, applies to loans or
investments made pursuant to this section.
(Added to NRS by 1971, 983; A 1987, 1914; 1995, 1099; 1997, 987)
1. A bank which is acting as a fiduciary or agent may, in its
discretion or at the direction of another person who is authorized to
direct the investment of money held by the bank as a fiduciary or agent,
invest in the securities of a management investment trust or management
investment company if:
(a) The investment trust or investment company is registered
pursuant to the Investment Company Act of 1940, as amended, 15 U.S.C. §§
80a-1 et seq.; and
(b) The portfolio of the investment trust or investment company
consists substantially of investments which are not prohibited by the
instrument creating the fiduciary or agency relationship.
2. A bank or an affiliate of the bank may provide services to the
investment trust or investment company, including, without limitation,
acting as an investment adviser, custodian, transfer agent, registrar,
sponsor, distributor or manager and may receive reasonable compensation
for the services. The manner in which the compensation is calculated must
be disclosed to the person who is currently receiving the benefits of the
fiduciary or agency relationship with the bank. The disclosure may be
made by a prospectus, a statement of account or otherwise.
3. A bank may deposit money held by the bank as a fiduciary or
agent with an affiliate before investing or making other disposition of
the money.
(Added to NRS by 1991, 822)
A state bank may purchase for its
own account the stock and other securities of:
1. A development corporation organized under the provisions of
chapter 670 of NRS;
2. A corporation for economic revitalization and diversification
organized under the provisions of chapter 670A of NRS, if the bank is a member of the
corporation, and to the extent of its loan limit established under NRS
670A.200 , on the same terms and under
the same conditions as a national bank may purchase them; and
3. Subject to any conditions imposed by the commissioner, a
development corporation, a corporation for economic revitalization and
diversification, a corporation for community development, or a similar
corporation organized in another state if the Commissioner determines
that the laws pursuant to which the corporation is organized are
substantially similar to the provisions of chapter 670 or 670A of NRS.
(Added to NRS by 1975, 1827; A 1979, 583; 1983, 1279; 1997, 988)
1. A bank may make or invest in a loan to finance a borrower’s
interest in or to refinance his existing interest in a cooperative
housing corporation if the loan is secured by:
(a) A first security interest in stock or a certificate of
membership in the cooperative housing corporation; and
(b) An assignment of or lien on the borrower’s interest in the
lease or other right of tenancy to a dwelling unit of the cooperative
housing corporation.
2. For purposes of this chapter, the interest in a cooperative
housing corporation which is encumbered by a security interest shall be
deemed to be real property, and any loan made pursuant to subsection 1
shall be deemed to be a loan secured by a mortgage on real property.
3. As used in subsection 1, “cooperative housing corporation”
means a corporation organized under the laws of this state for the
purpose of the cooperative ownership of real estate whereby each of the
stockholders or members is entitled, through ownership of stock or a
certificate of membership in the corporation, to occupy a house,
apartment or other dwelling unit on real estate owned by the corporation.
(Added to NRS by 1979, 709)
1. A bank may invest in real property for development, directly or
through partnerships, joint ventures or other indirect methods. Any such
investment must not exceed the market value or appraisal of the property
as evidenced by a report prepared within 120 days before the investment
by a member of a society approved collectively by the Commissioner or by
another appraiser approved individually by the Commissioner. Approval
must be based on the independence, experience and training required of or
possessed by the appraiser.
2. Within 30 days after such an investment is made, the bank must
file with the Commissioner:
(a) A certified copy of at least one report of the appraisal of the
real property in which the investment is made; and
(b) The report of a title insurance company which contains the
transfers of title which occurred during a period of at least 3 years
immediately preceding the investment and the amount of consideration, if
available, given for each transfer.
3. A bank may not invest in real property for development,
exclusive of investments allowed under paragraphs (a) and (b) of
subsection 2 of NRS 662.015 and of real
property acquired through the collection of debts due to the bank, an
amount which exceeds its stockholders’ or members’ equity or 10 percent
of its assets, whichever is less. The Commissioner may require a
statement from the bank disclosing whether any director, officer or
employee of the bank has a direct or indirect interest in the real
property involved or has had any such interest at any time during the
preceding 3 years. Ownership of stock in a corporation which has an
interest is an interest in the property of the stockholder. Failure to
make a required disclosure is unlawful.
(Added to NRS by 1985, 1050; A 1987, 1915; 1997, 988)
Subject to any applicable regulations of the
Commissioner, a banking corporation may grant options to purchase, sell
or enter into agreements to sell shares of its capital stock to its
directors, officers or employees, or any of them, for a consideration of
not less than 100 percent of the fair market value of the shares on the
date the option is granted, or, if pursuant to a stock purchase plan, 85
percent of the fair market value of the shares on the date the purchase
price is fixed, pursuant to the terms of a plan for the purchase of stock
by officers and employees which has been adopted by the board of
directors of the bank and approved by a majority of the holders of the
particular class or classes of stock that are included in the plan and by
the Commissioner. In no event may the option to purchase such shares be
for a consideration less than the par value thereof.
(Added to NRS by 1971, 983; A 1983, 1739; 1985, 739; 1987, 1916;
1995, 485; 1997, 989)
A bank may issue
capital notes, collateralized debt securities, collateralized debt
certificates, or debentures, convertible or otherwise, subject to such
regulations as the Commissioner may adopt with respect thereto.
(Added to NRS by 1971, 984; A 1983, 1739; 1987, 1916; 1997, 989)
1. Except as otherwise provided in subsection 2, no bank may make
any loan or discount on the security of its own stock or members’
interests, nor be the purchaser or holder of any such shares or
interests, unless the loan, discount, purchase or holding has been
approved by the Commissioner or is necessary to prevent loss upon a debt
previously contracted in good faith.
2. A bank may make a loan or discount on the security of its own
stock or members’ interests as it deems appropriate if the bank is
subject to the reporting requirements set forth in section 12, 13, 14 or
15(d) of the Securities Exchange Act of 1934, as amended, 15 U.S.C §§
78l, 78m, 78n and 78o(d), respectively, or 12 C.F.R. § 335.
3. Stock or interests purchased or acquired to prevent loss upon a
debt previously contracted in good faith must, within 2 years after they
are purchased, be sold or disposed of at a public or private sale, unless
the Commissioner authorizes the bank to hold the stock or interests for a
longer period. After the expiration of 2 years or the period authorized
by the Commissioner, any such stock or interests not sold or disposed of
pursuant to this subsection must, except upon the approval of the
Commissioner, be charged to profit and loss and must not be considered as
part of the assets of the bank.
4. Any bank may sell or become the owner of any property which may
come into its possession as collateral security for any debt or
obligation due it, according to the terms of any contract depositing the
collateral security. If there is no contract, the collateral security may
be sold in the manner provided by law. Any property the bank has in its
possession pursuant to this subsection, other than real property, must be
sold within 2 years after it is acquired, unless the Commissioner
authorizes the bank to hold the property for a longer period.
(Added to NRS by 1971, 984; A 1995, 485; 1997, 989)
1. Except as otherwise provided in this section and subject to the
provisions of NRS 662.065 and 662.125
, no bank may make any investment in the
stock or become a member of any other state or national bank.
2. A bank doing business under this title may subscribe to or
purchase, upon such terms as may be agreed upon, the stock of banks
organized under the Act of Congress known as the Edge Act or the stock of
central reserve banks whose stock exceeds $1,000,000.
3. To constitute a central reserve bank as contemplated by this
title, at least 50 percent of the capital stock of the bank must be owned
by other banks. The investment by any bank in the capital stock of a
central reserve bank or a bank organized under the Edge Act, must at no
time exceed 10 percent of the stockholders’ or members’ equity of the
bank making the investment.
4. A bank shall not invest in the stocks or ownership of other
corporations, firms, partnerships or companies except as otherwise
provided in this title, unless the investment is made to protect the bank
from loss.
5. A bank may invest in the stocks or ownership of other
corporations, firms, partnerships or companies as part of a merger,
consolidation, combination or acquisition that is authorized pursuant to
the provisions of chapter 78 , 86 or 92A of NRS,
regardless of whether the investment is made to protect the bank from
loss.
6. Any stocks or ownership owned or acquired after July 1, 1971,
in excess of the limitations imposed by this section must be disposed of
at public or private sale within 12 months after the date of acquiring
them, and if not so disposed of, they must be charged to profit and loss
account, and no longer carried on the books as an asset. The limit of
time in which such stocks or ownership is disposed of or charged off the
books of the bank may be extended by the Commissioner if in his judgment
it is for the best interest of the bank that an extension be granted.
7. A bank may subscribe to, purchase or become the owner of stock
in:
(a) Federal reserve banks as established by Act of Congress
approved December 23, 1913, being c. 6, 38 Stat. 251, or any amendment
thereof; or
(b) Any governmental agency, Federal Home Loan Bank or liquidating
or financial corporation created by the Congress of the United States.
8. A bank may invest up to 50 percent of its surplus in the stock
or membership of corporations or limited-liability companies engaged in
related banking fields.
(Added to NRS by 1971, 984; A 1983, 1739; 1987, 1916; 1995, 486;
1997, 990)
1. Subject to the limitations set forth in NRS 662.155 , the total outstanding loans of any bank to
any person, company, corporation or firm may not at any time exceed 25
percent of the stockholders’ or members’ equity of the bank, actually
paid in. The discount of bills of exchange drawn in good faith against
actual existing values, as collateral security, and a discount or
purchase of commercial or business paper, actually owned by the persons,
must not be considered as money loaned.
2. Neither the limitation on loans by banks contained in this
section nor any other similar limitations contained in any law of this
state relating to banks or banking apply to any loan or loans made by any
bank to the extent that they are secured or covered by guarantees or by
commitments or agreements to take over or to purchase made by any Federal
Reserve Bank or by the United States or any department, bureau, board,
commission or establishment of the United States, including any
corporation wholly owned, directly or indirectly, by the United States.
3. The Commissioner may establish limitations on loans made by a
bank to its directors, officers or employees and may establish
requirements for the reporting of these loans.
4. The Commissioner may adopt regulations necessary to carry out
the provisions of this section.
(Added to NRS by 1971, 985; A 1981, 766; 1983, 1740; 1987, 1917;
1991, 373; 1997, 991)
1. The combination of investments in private securities provided
for in subsection 5 of NRS 662.065 and
outstanding loans provided for in subsection 1 of NRS 662.145 , of any bank to any one obligor, person,
company, corporation or firm, including any unincorporated company or
firm and the members thereof, must not at any time exceed 25 percent of
the stockholders’ or members’ equity of the bank.
2. The Commissioner may adopt regulations necessary to carry out
the provisions of this section.
(Added to NRS by 1971, 985; A 1991, 373; 1997, 991)
1. Any bank may secure money deposited with a bank by the United
States, the State of Nevada or a political subdivision of this state by
pledging acceptable assets of the bank as collateral security.
2. Any bank may borrow money for temporary purposes, not to exceed
the amount of its stockholders’ or members’ equity, and may pledge any of
its assets as collateral security therefor.
3. With the written consent of the Commissioner, a bank may borrow
an amount that is not more than 200 percent in excess of its
stockholders’ or members’ equity, and pledge assets of the bank as
collateral security for the amount borrowed. Any indebtedness contracted
in excess of the amount limited in this subsection is void in its
entirety.
4. A bank may borrow money from the Federal Home Loan Bank. Money
borrowed pursuant to this subsection shall not be deemed borrowed money
for the purposes of the limitations prescribed in subsections 2 and 3. A
bank may pledge any of its assets as collateral security for money
borrowed pursuant to this subsection.
5. The purchase of federal reserve money by a bank from another
bank shall be deemed a transfer from a seller’s account in a Federal
Reserve Bank to the buyer’s account in that bank, and the transfer shall
be considered a purchase and sale of federal reserve money. Such a
transfer does not create an obligation on the part of the buyer subject
to NRS 662.145 , or a borrowing subject
to the limitations of this section, but shall be considered a purchase
and sale of federal reserve money.
(Added to NRS by 1971, 985; A 1983, 1741; 1987, 1917; 1997, 992)
1. Each bank doing business under the laws of this state shall
have on hand, in cash, at least the sum of money determined by the
Commissioner as necessary to meet the operating requirements of the bank
and at least a required sum consisting of demand balances due from good
and solvent banks.
2. Any bank organized under the laws of this state shall carry or
maintain as a reserve at least that amount of money which is required
under the terms of the Federal Reserve Act.
(Added to NRS by 1971, 986; A 1983, 295, 1741; 1985, 739; 1987,
1918)
1. As used in this section:
(a) “Board of Governors of the Federal Reserve System” means the
Board of Governors of the Federal Reserve System created and described in
the Federal Reserve Act.
(b) “Federal Reserve Act” means the Act of Congress, approved
December 23, 1913, being c. 6, 38 Stat. 251, as amended.
(c) “Federal Reserve Bank” means the Federal Reserve Banks created
and organized under authority of the Federal Reserve Act.
(d) “Member bank” means any national bank, state bank or banking
and trust company which has become or which becomes a member of one of
the Federal Reserve Banks created by the Federal Reserve Act.
2. Any bank organized under the laws of this state may subscribe
to the stock and become a member of a Federal Reserve Bank.
3. Any bank organized under the laws of this state which is, or
which becomes, a member of a Federal Reserve Bank is, by this section,
vested with all powers conferred upon member banks of the Federal Reserve
Banks by the terms of the Federal Reserve Act as fully and completely as
if such powers were specifically enumerated and described in this
section, and all such powers must be exercised subject to all
restrictions and limitations imposed by the Federal Reserve Act, or by
regulations of the Board of Governors of the Federal Reserve System made
pursuant thereto. The right, however, is expressly reserved to revoke or
to amend the powers conferred in this section.
4. A compliance on the part of any such bank with the reserve
requirements of the Federal Reserve Act shall be deemed to be a full
compliance with those provisions of the laws of this state which require
banks to maintain cash balances in their vaults or with other banks, and
no such bank need carry or maintain a reserve other than such as is
required under the terms of the Federal Reserve Act.
5. Any such bank continues to be subject to the supervision and
examinations required by the laws of this state, except that the Board of
Governors of the Federal Reserve System may, if it deems necessary, make
examinations. The authorities of this state having supervision over such
bank may disclose to the Board of Governors of the Federal Reserve
System, or to examiners appointed by it, all information in reference to
the affairs of any bank which has become, or desires to become, a member
of a Federal Reserve Bank.
(Added to NRS by 1971, 987; A 1995, 486; 1997, 992)
SAVINGS BANK BUSINESS
1. Any bank organized under the provisions of this title may carry
on a savings business as prescribed in this title.
2. Any bank conducting a savings business may receive deposits on
such terms as are authorized by its board of directors.
3. A receipt or a passbook must be issued to each depositor in a
bank for all money deposited on open account.
4. The rules and regulations adopted by the bank governing
deposits must be:
(a) Included in the receipt or passbook issued pursuant to
subsection 3;
(b) Printed and conspicuously posted in a place accessible and
visible to all persons in the business office of the bank; or
(c) Provided directly to the depositor.
5. Payments from the account to the depositor must be made only if
the depositor authorizes the payments. Banks issuing savings deposit
receipts for accounts other than certificates of deposit or passbook
accounts shall, not less often than:
(a) Quarterly, for accounts having a balance of $100 or more; or
(b) Annually, for accounts having a balance of less than $100,
Ê deliver or mail to the depositor a statement, showing the balance on
deposit in the account and each deposit made by and each payment made to
the depositor during the calendar quarter.
6. This title does not prohibit a bank from issuing time
certificates of deposit.
(Added to NRS by 1971, 988; A 1981, 846; 1997, 993)
PAYMENTS IN EXCHANGE
In order to prevent
accumulation of unnecessary amounts of currency in the vaults of the
banks chartered by this state, all checks drawn on such banks shall be
payable, unless specified on the face thereof to the contrary by the
maker or makers of the checks at the option of the drawee bank, in
exchange drawn on the reserve deposits of such drawee bank when any such
check is presented by or through any federal reserve bank, post office or
express company, or any respective agents thereof.
(Added to NRS by 1971, 988)
TRUST COMPANY BUSINESS
As used in NRS 662.231 to 662.245 ,
inclusive, “business of a trust company” or “trust company business” has
the meaning ascribed to it in NRS 669.029 .
(Added to NRS by 1999, 840 )
1. Any bank organized under this title may state in its articles
of incorporation that it will carry on a trust company business in
connection with the banking business, and in addition to the powers
conferred upon banks may:
(a) Act as trustee under any mortgage or bond of any person, firm
or corporation, or of any municipality or body politic.
(b) Accept and execute any municipal, corporate or individual trust
not inconsistent with the laws of this State.
(c) Act under the order or appointment of any court as guardian,
commissioner, receiver or trustee.
(d) Act as executor or trustee under any will.
(e) Act as fiscal or transfer agent of any state, municipality,
body politic or corporation, and in a capacity to receive and disburse
money and register, transfer and countersign certificates of stock, bonds
and other evidences of indebtedness.
(f) Act as local or resident agent of foreign corporations.
2. Any such bank holding any asset as a fiduciary shall:
(a) Segregate all such assets from any other assets of the bank and
from the assets of any other trust, except as may be expressly provided
otherwise by law or by the writing creating the trust.
(b) Record such assets in a separate set of books maintained for
fiduciary activities.
(Added to NRS by 1971, 988; A 1987, 1918; 1993, 2280)
1. A bank organized under this title may maintain trust offices in
this or other states with the written consent of the Commissioner.
2. Any action taken by the Commissioner pursuant to subsection 1
is subject to review in the manner provided in NRS 659.055 .
3. The Commissioner may adopt regulations establishing reasonable
conditions and requirements for the approval and maintenance of trust
offices.
4. As used in this section, “trust office” means an office, other
than the principal office, at which a bank organized under this title is
authorized by the Commissioner to conduct the business of a trust company.
(Added to NRS by 1999, 840 )
1. An organization that does not maintain an office in this State
to conduct the business of a trust company may be appointed to act as
fiduciary by any court or by authority of any law of this State if, in
addition to any other requirements of law, the organization:
(a) Associates as cofiduciary a bank authorized to do business in
this State or a trust company licensed pursuant to chapter 669 of NRS; or
(b) Is a trust corporation or trust company which:
(1) Is organized under the laws of and has its principal
place of business in another state which allows trust corporations or
trust companies licensed pursuant to chapter 669 of NRS to act as fiduciary in that state;
(2) Is authorized by its charter to act as fiduciary; and
(3) Before the appointment as fiduciary, files with the
Secretary of State a document, acknowledged before a notarial officer,
which:
(I) Appoints the Secretary of State as its agent upon
whom all process in any action or proceeding against it may be served;
(II) Contains its agreement that the appointment
continues in force as long as any liability remains outstanding against
it in this State, and that any process against it which is served on the
Secretary of State is of the same legal validity as if served on it
personally;
(III) Contains an address to which the Secretary of
State may mail the process when received; and
(IV) Is accompanied by a fee of not more than $20.
Ê A copy of the document required by this subparagraph, certified by the
Secretary of State, is sufficient evidence of the appointment and
agreement.
2. A court which has jurisdiction over the accounts of a fiduciary
that is a trust corporation or trust company described in paragraph (b)
of subsection 1 may require the fiduciary to provide a bond to ensure the
performance of its duties as fiduciary, in the same manner and to the
same extent as the court may require such a bond from a fiduciary that is
a bank or trust company described in paragraph (a) of subsection 1.
3. Service of process authorized by subparagraph (3) of paragraph
(b) of subsection 1 must be made by filing with the Secretary of State:
(a) Two copies of the legal process. The copies must include a
specific citation to the provisions of this section. The Secretary of
State may refuse to accept such service if the proper citation is not
included in each copy.
(b) A fee of not more than $20.
Ê The Secretary of State shall forthwith forward one copy of the legal
process to the organization, by registered or certified mail prepaid to
the address provided in the document filed pursuant to subparagraph (3)
of paragraph (b) of subsection 1.
4. The Commissioner shall adopt regulations establishing the
amount of the fees required pursuant to this section.
5. As used in this section:
(a) “Fiduciary” means an executor, commissioner, guardian of minors
or estates, receiver, depositary or trustee.
(b) “Notarial officer” has the meaning ascribed to it in NRS
240.005 .
(c) “State” means any state or territory of the United States or
the District of Columbia.
(Added to NRS by 1971, 989; A 1979, 692; 1987, 1918; 1993, 1465;
1995, 487, 1551; 1997, 476; 1999, 840 ; 2005, 1844 )
CLOSING OF BANKS
1. A bank may elect to close on Saturdays, Sundays or legal
holidays. Except as otherwise provided in subsection 2 and NRS 104.4303
, if a bank elects not to close on a
Saturday, Sunday or legal holiday, all business transacted on a Saturday,
Sunday or legal holiday shall be deemed to have been transacted on the
next banking day that is not a Saturday, Sunday or legal holiday.
2. If a bank elects not to close on a Saturday, Sunday or legal
holiday which falls on the last day of a calendar year, that day shall be
deemed a regular banking day for the purposes of transacting business.
3. As used in this section, the term “legal holiday” includes all
days which are declared by NRS 236.015
to be legal holidays.
(Added to NRS by 1971, 989; A 1985, 984; 1987, 1919; 1997, 3515;
1999, 2412 )
As used in NRS
662.275 to 662.305 , inclusive, unless the context otherwise
requires:
1. “Bank” includes national banks to the extent that NRS 662.275
to 662.305 , inclusive, do not conflict with or infringe
upon federal law.
2. “Emergency” means any condition or occurrence which may
interfere physically with the conduct of normal business operations at
one or more or all of the offices of a bank, or which poses an imminent
or existing threat to the safety or security of persons or property, or
both. Without limiting the generality of the foregoing, an emergency may
arise as a result of any one or more of the following: Fire, flood,
earthquake, hurricanes, wind, rain or snowstorms, labor disputes and
strikes, power failures, transportation failures, interruption of
communication facilities, shortages of fuel, housing, food,
transportation or labor, robbery or attempted robbery, actual or
threatened enemy attack, epidemics or other catastrophes, riots, civil
commotions and other acts of lawlessness or violence, actual or
threatened.
3. “Office” means any place at which a bank transacts its business
or conducts operations related to its business.
4. “Officers” means the person or persons designated by the board
of directors, the managers or other governing body of a bank, to act for
the bank in carrying out the provisions of NRS 662.275 to 662.305 ,
inclusive, or in the absence of any such designation or the absence of
the officer or officers so designated, the president, a manager or any
other officer currently in charge of the bank or of the office or offices
in question.
(Added to NRS by 1971, 989; A 1995, 488)
1. Whenever the Commissioner is of the opinion that an emergency
exists, or that there is a reasonable probability that an emergency may
develop, in this state or any part of this state, the Commissioner may,
by proclamation, authorize banks located in the affected area or areas to
close any or all of their offices.
2. In addition, if the Commissioner is of the opinion that an
emergency exists, or that there is a reasonable probability that an
emergency may develop, which affects or may affect a particular bank or
banks, or a particular office or offices thereof, but not banks located
in the area generally, he may authorize the particular bank or banks, or
office or offices so affected, to close.
3. The office or offices so closed must remain closed until the
Commissioner proclaims that the emergency has ended, or until such
earlier time as the officers of the bank determine that one or more of
such offices should reopen. In either event, the bank or office which was
closed may remain closed for such further time thereafter as may
reasonably be required to reopen.
(Added to NRS by 1971, 989; A 1983, 1741; 1987, 1919)
1. Whenever the officers of a bank are of the opinion that an
emergency exists, or that there is a reasonable probability that an
emergency may develop, which affects or may affect one or more or all of
a bank’s offices, they shall have the authority in the reasonable and
proper exercise of their discretion not to open any one or more or all of
such offices during the continuation of such emergency, even if the
Commissioner has not issued and does not issue a proclamation of
emergency.
2. The office or offices so closed must remain closed until such
time as the officers determine that the emergency has ended, and for such
further time thereafter as may reasonably be required to reopen; but such
office or offices must not remain closed for more than 48 consecutive
hours, excluding other legal holidays, without requesting the approval of
the Commissioner.
3. The officers of a bank may close any one or more or all of the
bank’s offices on any day or days designated, by proclamation of the
President of the United States or the Governor of this state, as a day or
days of mourning, rejoicing or other special observance.
(Added to NRS by 1971, 990; A 1983, 1742; 1987, 1919)
A bank closing an office or offices
pursuant to subsection 1 of NRS 662.285
shall give as prompt notice of its action as conditions will permit, by
any means available, to the Commissioner, or in the case of a national
bank, to the Comptroller of the Currency.
(Added to NRS by 1971, 990; A 1983, 1742; 1987, 1920)
1. Any day on which a bank, or any one or more of its offices, is
closed during all or any part of its normal banking hours pursuant to the
authorization granted under NRS 662.265
to 662.305 , inclusive, shall be, with
respect to such bank or, if not all of its offices are closed, then with
respect to any office or offices which are closed, a legal holiday for
all purposes with respect to any banking business of any character. No
liability or loss of rights of any kind on the part of any bank, or
director, officer or employee thereof, shall accrue or result by virtue
of any such closing.
2. NRS 662.265 to 662.305 , inclusive, are in addition to, and not in
substitution for or limitation of, any other law of this state or of the
United States, authorizing the closing of a bank or excusing the delay of
a bank in the performance of its duties and obligations because of
emergencies or conditions beyond the bank’s control, or otherwise.
(Added to NRS by 1971, 990)
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